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==Welcome to the Marketingunboxed Wiki== Marketing Unboxed is the centre of all things market research. Get your business together by knowing the right marketing moves today! ==What is Market Research?== Market research is the process of collecting, recording and analysing data about the customers, competitors and the market. It is used to find out how consumers would react to their product. Not only that but also to different price levels, alternative forms of promotion, new types of packaging, preferred means of distribution and lots more. The use of market research is definitely important because it will impact on how you will make your decisions towards all areas of the marketing process. Market research is conducted by specialists agencies working for other businesses and it is rather costly, so is it worth it? ==Why do we Need Market Research?== #

To reduce the risk associated with new product launches

Before launching any kind of new product we need to know the potential demand for a new product or service. Market research is key in New Product Development (NPD). Most firms would also like to check the market condition before launching a new product.

To predict future demand changes

With market research you can prepare yourself by predicting the future demand changes. You can launch a new feature in your product or promote it in a certain way that interests the people.

To explain patterns in sales of existing products and market trends

Market research is not only used for new products but it is also used for existing products. If one day the sales of your company has fallen you need to know the cause of it fast so you can fix it immediately.

To assess the most favoured designs, flavours, styles, promotions and packages for a product

With market research you can find out the most favoured design and performance thus making you more focused. These can be incorporated into the final product.

==Market Research can be used to Discover:== *

Market size and consumer tastes and trends

The product and its perceived strengths and weaknesses

The promotion used and its effectiveness

Competitors and their claimed unique selling propositions

Distribution methods most preferred by consumers

  • Consumers’ preferences for packaging of the product ==The Market Research Process== #

Management problem identification

This is the first and most important step in the market research process. You can spend millions of dollars on market research but if you don’t have a clear idea on what are you trying to find out then it is all a waste of money.

Examples of purpose:

How can we break into the market in another country?

Why are our sales falling?

After knowing what the problem is or what is your purpose of doing market accurately then the process can be directed accurately towards solving it. When you don’t set the accurate purpose then you get all of this unnecessary information which prevents you from solving it.  

Research objectives

Your objectives must be related with your original problem. Your objectives should be set in a way so that when the objective is solved then it can give you the answer on solving your original problem.

Examples of objectives in form of questions:

What would be the impact of new packaging on sales of our product?

If we advertise this product on television, what will be the likely impact on sales volume and market share?

Sources of data - primary and secondary research

There are two types of research that you can use to collect your data: primary research or secondary research. Primary research is the collection of first-hand data that is directly related to a firm’s needs. While secondary data is a collection of data from second-hand resources. Primary research collects “first-hand” data which means they are collected for the first time. Secondary research is the use of already available information that has already been collected from other organisations. So which type of research should be done first?

When making a new product it is advised that you undertake secondary research first, if the data is available. Unless your product is so different then you should undertake primary research first.

Secondary research is sometimes called ‘Desk Research’ because without leaving your desk you can all of these information from the internet, past files or reports from an agency specialised in a certain field. ==Sources of Secondary Data:== #

Government publications

In the Uk it would be referred to:

population census

social trends

economic trends

annual abstract of statistics

family expenditure survey

Local libraries and local government offices

if the research dones i only for a small area for example making a new cafe in your neighborhood then you would need:

local population census returns with details of total numbers and age and occupation distributions

numbers of households in the area

proportion of different ethnic groups in the area

Trade organisations

Trade organisations produce regular reports on a certain field. For example:

society of motor manufacturers and traders

furniture retailers association

engineering employers federation

Market intelligence reports

Very detailed reports on individual markets and industries. It is known to be very costly and it is produced by a specialist market research agency. They are usually available in local libraries.

For example:

Mintel reports

Key Note reports

Euromonitor

Newspaper reports and specialist publications

Marketing – this journal provides weekly advertising spend data and consumer ‘recall of adverts’ results

The Grocer

Motor Trader

The Financial Times – regular articles on key industries such as IT and detailed country reports – essential for potential exporters

Internal company records

Internal company records can only be used for businesses that has been trading for some time, thus having a great quantity of secondary data.

•Customer sales records

•Guarantee claims

•Daily, weekly and monthly sales trends

The internet

The internet has loads of secondary data from all over the world but you should always check the accuracy and relevance of the source, because it can be deceiving sometimes. Advantages and disadvantages of secondary research {| style="border:none;border-collapse:collapse;width:624px" |- style="height:0px" | style="border-left:solid#0000001px;border-right:solid#0000001px;border-bottom:solid#0000001px;border-top:solid#0000001px;vertical-align:top;padding:7px7px7px7px"|

Advantages

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Disadvantages

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Cheaper

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Not updated frequently; out-of-date

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It supports primary research

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May not be suitable for business (different purpose)

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Easy to obtain and access

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May not be accurate

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Allows comparison data from different sources

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Might not be available for new product developments

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